Super Group (SGHC) Limited (NYSE: SGHC), the parent company of
Betway, a leading online sports betting and gaming business, and
Spin, the multi-brand online casino, today announced that,
following the completion of an extensive internal review, the
company intends to undertake an exit plan for its sportsbook
product in the United States.
The company, along with relevant regulators and partners, will
shortly begin the process to fully close its U.S. sportsbook
operations in the nine states in which it is currently live. Super
Group will, however, maintain its iGaming presence in the U.S. and
plans to operate two iGaming brands from its Spin portfolio
(including Jackpot City) in both New Jersey and Pennsylvania.
Chief Executive Officer Neal Menashe commented: “As a global
business, we constantly evaluate the optimal use of our resources
across all markets in which we operate. We have recently concluded
an extensive review of our U.S. operations and, at present, we do
not see a long-term path to profitability for the sportsbook
product.”
“The vast majority of Super Group’s revenue is generated in
iGaming and, in line with that strategy, we will continue to offer
our leading casino product in New Jersey and Pennsylvania. We are
open to expanding our U.S. footprint if the right investment or
strategic opportunities arise.”
Super Group expects to incur costs and charges in connection
with the closure of its U.S. sportsbook operation, information
about which will be provided by management during the next
quarterly earnings call, scheduled for early August. Such costs and
charges, while not insignificant, will not have any impact on Super
Group’s previously communicated capital allocation or operating
plans. Non-U.S. earnings, which have historically been reported
separately, will not be negatively impacted by this closure.
About Super Group (SGHC) Limited
Super Group (SGHC) Limited is the holding company for leading
global online sports betting and gaming businesses: Betway, a
premier online sports betting brand, and Spin, a multi-brand online
casino offering. The group is licensed in multiple jurisdictions,
with leading positions in key markets throughout Europe, the
Americas and Africa. The group’s sports betting and online gaming
offerings are underpinned by its scale and leading technology,
enabling fast and effective entry into new markets. Its proprietary
marketing and data analytics engine empowers it to responsibly
provide a unique and personalized customer experience. Super Group
has been ranked number 6 in the EGR Power 50 for the last two
years. For more information, visit www.sghc.com.
Forward-Looking Statements
Certain statements made in this press release are “forward
looking statements” within the meaning of the “safe harbor”
provisions of the United States Private Securities Litigation
Reform Act of 1995.
These forward-looking statements generally are identified by the
words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “strategy,” “future,” “opportunity,” “plan,” “may,”
“should,” “will,” “would,” and similar expressions. Forward-looking
statements are predictions, projections and other statements about
future events that are based on current expectations and
assumptions and, as a result, are subject to risks and
uncertainties. Forward-looking statements in this press release
include statements regarding Super Group’s intention to close its
sportsbook operations in the United States, including expectations
for incurring and disclosing associated costs and charges, Super
Group’s plans for its iGaming presence in the United States, and
other statements that are not historical fact. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) the ability to implement business plans, forecasts
and other expectations, and identify and realize additional
opportunities; (ii) the ability to maintain the listing of Super
Group’s securities on a national securities exchange; (iii) changes
in the competitive and regulated industries in which Super Group
operates; (iv) variations in operating performance across
competitors; (v) changes in laws and regulations affecting Super
Group’s business; (vi) Super Group’s inability to meet or exceed
its financial projections; (vii) changes in general economic
conditions; (viii) changes in domestic and foreign business,
market, financial, political and legal conditions; (ix) future
global, regional or local economic and market conditions affecting
the sports betting and gaming industry; (x) changes in existing
laws and regulations, or their interpretation or enforcement, or
the regulatory climate with respect to the sports betting and
gaming industry; (xi) the ability of Super Group’s customers to
deposit funds in order to participate in Super Group’s gaming
products; (xii) compliance with regulatory requirements in a
particular regulated jurisdiction, or Super Group’s ability to
successfully obtain a license or permit applied for in a particular
regulated jurisdiction, or maintain, renew or expand existing
licenses; (xiii) the technological solutions Super Group has in
place to block customers in certain jurisdictions, including
jurisdictions where Super Group’s business is illegal, or which are
sanctioned by countries in which Super Group operates from
accessing its offerings; (xiv) Super Group’s ability to restrict
and manage betting limits at the individual customer level based on
individual customer profiles and risk level to the enterprise; (xv)
the ability by Super Group’s key executives, certain employees or
other individuals related to the business, including significant
shareholders, to obtain the necessary licenses or comply with
individual regulatory obligations in certain jurisdictions; (xvi)
protection or enforcement of Super Group’s intellectual property
rights, the confidentiality of its trade secrets and confidential
information, or the costs involved in protecting or enforcing Super
Group’s intellectual property rights and confidential information;
(xvii) compliance with applicable data protection and privacy laws
in Super Group’s collection, storage and use, including sharing and
international transfers, of personal data; (xviii) failures,
errors, defects or disruptions in Super Group’s information
technology and other systems and platforms; (xix) Super Group’s
ability to develop new products, services, and solutions, bring
them to market in a timely manner, and make enhancements to its
platform; (xx) Super Group’s ability to maintain and grow its
market share, including its ability to enter new markets and
acquire and retain paying customers; (xxi) the success, including
win or hold rates, of existing and future online betting and gaming
products; (xxii) competition within the broader entertainment
industry; (xxiii) Super Group’s reliance on strategic relationships
with land based casinos, sports teams, event planners, local
licensing partners and advertisers; (xxiv) events or media coverage
relating to, or the popularity of, online betting and gaming
industry; (xxv) trading, liability management and pricing risk
related to Super Group’s participation in the sports betting and
gaming industry; (xxvi) accessibility to the services of banks,
credit card issuers and payment processing services providers due
to the nature of Super Group’s business; (xxvii) the regulatory
approvals related to proposed acquisitions and the integration of
the acquired businesses; and (xxviii) other risks and uncertainties
indicated from time to time for Super Group including those under
the heading “Risk Factors” in our Annual Report on Form 20-F filed
with the SEC on April 25, 2024, and in Super Group’s other filings
with the SEC. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in other documents filed or that may be
filed by Super Group from time to time with the SEC. These filings
identify and address other important risks and uncertainties that
could cause actual events and results to differ materially from
those contained in the forward-looking statements. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and Super Group assumes no obligation and does not intend to update
or revise these forward-looking statements, whether as a result of
new information, future events, or otherwise. Super Group does not
give any assurance that it will achieve its expectations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240708232597/en/
Investors: investors@sghc.com Media: media@sghc.com
Super Group SGHC (NYSE:SGHC)
Historical Stock Chart
From Oct 2024 to Nov 2024
Super Group SGHC (NYSE:SGHC)
Historical Stock Chart
From Nov 2023 to Nov 2024